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EasyJet plans to relaunch package holiday business

The collapse of Thomas Cook created a substantial gap within the package holiday market, one that easyJet has seen as an opportunity to swoop in and fill.

Research into consumer habits has shown that travellers no longer want to commit to the standard week-long or fortnight-long breaks typically offered by package holiday organisers. Therefore, the new service provided by easyJet will offer “unrivalled” flexibility allowing customers the ability to design their trips specifically how they want.

The new operations will be introduced to the UK market before the Christmas period and will start taking bookings for winter 2019 and summer 2020.

Currently, 20 million people book flights every year with easyJet, however, only 500,000 book accommodation which is equal to just 0.25 per cent of those who fly.

The announcement came after the airline reported a 26 per cent decrease in pre-tax profits to £427m for the year leading up to 30 September.

Explaining one of their reasons for the package holiday relaunch, easyJet said: “The total European package holidays market is worth around £61bn per year. The UK alone is a £13bn market and has grown by 6% annually.”

EasyJet also commented that they now have the chance to become a significant competitor in the holiday market with low risk to itself as a company and low preliminary investments. Chief executive, Johan Lundgren said that the operations will bring “flexibility and excellent value” to the sector.

“We have built a brand new organisation, from the ground up, to replace the previously outsourced commission-based model,” he continued. “So we can directly sell to customers and grow our business quickly and at scale.”

Another plan recently unveiled by easyJet was that it would become the world´s only major net-zero carbon airline by offsetting carbon emissions. Lundgren told the BBC´s Today programme:  “This is not a long-term solution, offsetting is not perfect.

“I don’t think it’s greenwashing, everyone recognises that it works, but this is in addition to the fact that since 2000, we’ve reduced our carbon emissions by 30%.”